and the faith of all the cancer survivors -- everything i do off of the bike would go away, too. and don't think for a second i don't understand that. it's not about money for me. everything. it's also about the faith that people have put in me over the years. all of that would be erased. i don't need it to say in a contract, you're fired if you test positive. that's not as important as losing the support of hundreds of millions of people. >> now millions have seen him confess to doping and seen him damage the sport he says he loved. only time will tell whether that will be enough to revive his image and restore the faith of image and restore the faith of his followers. -- captions by vitac -- www.vitac.com

barack obama is entering his second term. only the third democratic president to be re-elected in the last 75 years. he faces deep domestic challenges, above all, a still weak economy. he faces a world in flux and in crisis from iran and syria to north korea and china. perhaps most visibly, he faces a domestic political deadlock that seems to overshadow all else. with this hand, what can he do? what will he do? i've asked for advice from the statesmen and women who have stood beside presidents as they have made their most difficult

decisions. from republicans like james baker. >> if we didn't have the dollar as a reserve currency of the world we would be greece. >> from democrats like robert rubin. >> in a democracy you can only move forward if both sides are willing to come together to govern. >> and independents like michael bloomberg. >> when you have jobs that we need to get done but americans won't take, letting the crops rot or letting the farms move south of the border is just insanity. >> and at the end, i'll write my own memo to the president. let's get started. while most of the world was ringing in the new year with revelry, the united states congress rang it in with anger, strife and confusion. the ugly battle over the fiscal cliff was emblematic of one of the biggest crises facing this nation.

politics in washington is so divided, so bitter, that even kicking the can down the road is almost impossible to get agreement on. so what to do? ronald reagan faced an opposition majority in the house of representatives. and he still got major legislation passed, including a major tax reform bill. james baker was treasury secretary at the time. >> the only time it's been done, maybe at least in 100 years and we did it with democratic votes. that was ronald reagan as president. we did it democratic votes. danny rostenkowski was chairman of ways and means. he wasn't going to come with a bill that wasn't very pro-democrat. so the question was whether he would sign on to that bill, pass it in the house and try to fix it in the republican senate? our republican house members came to us and said, if you try and do that, we're going to roll

you. dick cheney, trent lott, all, they came down to my office at the treasury department. they said, if you go forward with this, with this rostenkowski bill, and we then say you're going to fix it in the senate, we're going to roll you and they rolled us on the rule. they defeated us on the rule and i went over to the white house, having been reagan's chief of staff for 4 1/2 years. and i said, mr. president, you have to come out forcefully in favor of passing the rostenkowski bill so we can get to it to the senate and fix it and that means rolling out of our house republicans. well, guess what. afterwards, he did it. he did it. and we did it. and that's how we did it. it was successful and initiated a period of extraordinary economic growth. >> but you're describing a situation where you had to do a lot of compromising. you stood up to house republicans. you supported a democratic bill. it's difficult to imagine in today's partisan climate. >> i think that president obama could do that. president obama wants a legacy.

he deserves one. he's not going to have a legacy if he can't fix our economy. >> kay bailey hutchison is the recently retired senior senator from texas. >> this is his time to step out from his base and away from the fringes on both ends and say, here is what our country needs right now. >> ken dubersteen, chief of staff in ronald reagan's second term thinks that point about stepping out from your base is even more important since obama's re-election. >> the second term, it's the order of governing, not the art of campaigning. they're very different skill sets. in the art of governing, you have very much to almost make love to your opponents and say no to some of your fiercest supporters.

in campaigning, it's the exact opposite. so you have to figure out ways that you can accomplish things realizing that time is an enemy. get as much done as you can but don't overreach. >> what you're suggesting is that president obama needs to make love to the republicans and betray the democrats who helped elect him. >> i wouldn't use the word betray as much as i would say that sometimes it takes the ability to say yes to your opponents and no to some of your fiercest supporters. >> a lot of people say president obama should be schmoozing a lot, he should have republicans over. do you think that's atmospherics or does it produce real results? >> no, i don't think it's just atmospherics. if i'm negotiating with you and

i have in the back of my head i can trust what you tell me we're much more likely to get to an agreement. >> steven rattner, president obama's car czar says that republicans in congress today are just unwilling to cooperate. >> the president might have spent more time in the first term reaching out to congressmen, playing golf with them, having them to the white house, certainly couldn't have hurt and make things worse. that's for sure. might have helped. but at the same time, i think people who went to see the movie "lincoln" saying we could have passed any amendment to the constitution we wanted if we had lincoln in the white house. >> blood's been spilt. the moment is now, now, now! >> if we had lbj in the white house we'd have the civil rights act again -- they're kidding themselves. this is a different era. >> robert rubin was secretary of the treasury during another very partisan time. >> how did you deal with republicans on the hill for something like the '97 budget agreement while they were trying

to impeach president clinton? >> the partisan divide was bad in that period. i think it's worse today. in order to have a system that's effective, we have to do exactly what president obama said right after the election. >> i want to be clear. i'm not wedded to every detail of my plan. i'm open to compromise. i'm open to new ideas. i'm committed to solving our fiscal challenges. but i refuse to accept any approach that isn't balanced. >> in a democracy, you can only move forward if both sides albeit having very different philosophical views are willing to come together. without it, i think we're going to be in trouble. >> john podesta, bill clinton's chief of staff, says that presidents can make things happen even without congressional support. >> the president has enormous power under the constitution and the laws of the united states. i'll give you an example. he has authority to change the mix of energy in the country

through the use of existing powers that he has under the statutes, particularly the work he could do through his epa to move through the more dirty forms of polluting fuels to cleaner fuels. >> it might be hard to make it happen but james baker's point holds. president obama will need to get some help from republicans if he wants to get things done, otherwise it's just talk. if he could get 30 to 40 house republicans on his side, obama would have created a governing majority, something every successful president has had. next up, the economy. is there a silver bullet that will get it going? we'll tell you when we come back. the capital one cash rewards card

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fixing the american economy is the most urgent crisis president obama faces. despite the recovery, unemployment remains high, growth isn't where we would like it to be and the national debt has grown to historic proportions.

the bills signed in the wake of the fiscal cliff crisis is a small fix. is there a larger one? once again, james baker. >> what would be your advice to president obama? >> well, my advice to president obama is, mr. president, whatever happens in the second term, you're going to bear the consequences of. our country is in sick shape financially. economically, we are really in bad shape. if we didn't have the dollar as the de facto currency of the world we would be greece and we have got to fix our economic problem and that's -- it's not going to be fixed without leadership from you. the republicans maintain control of the house. and it's -- we have divided government. he's got to take the lead. he may score some short-term victories over the republicans. in the medium to long term, it's his enchilada. >> president clinton's secretary of the treasury, robert rubin.

>> when people look at what president obama should do, there are a number of people who say, well, he's got to get the fiscal house in order, he's got to deal with the deficit. why is that important? >> i think it is imperatively important to design a sound fiscal program that both contributes to job creation and recovery in the short term and i believe a sound fiscal program will do that by creating confidence and fiscal room for a moderate stimulus and meets the long-term imperative for addressing what i believe is an unsustainable and dangerous fiscal trajectory. in order to put ourselves on a sound fiscal footing, we clearly are going to have to have substantially more revenues, more revenues means higher taxes. whether it's tax rates or reduced deductions, one or the other and clearly a cost observed by those that pay the taxes and there are also going to be constraints on the programs. no matter where they are in the budget.

yet that's what you have to do if you get on a sound fiscal path and the longer you wait the deeper your hole gets. the harder it is to regain confidence. >> there are others who say we need even more fundamental economic reform. for example, it's time to redo the country's convoluted tax system. with all of its rulings and regulations, the u.s. tax code is now 73,000 pages long. paul o'neill, treasure secretary under george w. bush has an idea. >> you really wanted to scrap the entire u.s. tax code? >> i do. >> why? >> because it's inefficient. it's ineffective and it's fundamentally unfair. i believe this. revenue system should be used to raise money. it shouldn't be organized to distribute benefits. >> so no tax deductions? >> no deductions, no credits, no nothing. it's to raise revenue and ideally we should do it with a

progressive value added tax. that means -- >> that's a national sales tax. correct? >> well, it's not quite because progressive is important to me. i don't want people to pay taxes if they have $20,000 a year worth of income. but at $30,000, i might like for people to pay $1, just $1 so they have a legitimate claim for saying, i'm part of this society and i don't pay a lot but i do pay something. everybody participates and there's no game playing. it's a very efficient way to raise revenue. right now, it costs us $431 billion a year to administer the tax system we have. and the tax gap, the money we're not collecting that's theoretically owed is $400 billion a year. we could do better than that. we can think better than that. and the president needs to lay that out for us. >> even if we get more growth, we are still finding it difficult to get unemployment down.

elaine chao served as george w. bush's secretary of labor. what would you do to create more jobs in america? >> i think you have to keep the tax rate low. they're a direct burden on the resources of an employer. the unemployment rate has dropped now to 7.7% but that's primarily because labor participation rate dropped to 63.6%, one of the lowest rates we have seen in current years so what we're seeing actually is a lot of discouraged workers, people who can't find jobs and they have just given up and they're no longer working and not counted in the work force anymore so we have got to do more on the job creation side. it's a private sector who does the bulk of the hiring and they've got to have the confidence and that confidence comes from a more reasonable taxation level, more reasonable regulatory reform and also the fiscal discipline that we need in our country to restore our country's overall financial ratings.

>> democrats say what's most important is a stable, predictable set of rules, whatever the levels of taxation. steven ratner helped general motors get back in to the black as president obama's car czar. one of the things people say that president obama needs to do is to create a sense of confidence among the business community which will drive investment, which will drive jobs. so how does he do that? >> i think the president is off to a much better start. but we need to have a set of policies in place for long-term tax policy, budget policy, regulatory policy. not doing this a few months at a time. not careening from a debt ceiling debacle to a fiscal cliff to some other issue with tax credits that expire every few months and all that kind of stuff so i think somehow the government as a whole has to come together in order to give business the confidence it needs. >> the single most important cost that we need to get under

control is health care. which now takes up 17% of gdp and still rises much faster than inflation every year. peter orszag ran president obama's office of management and budget in the first term. he says obama care moves us away from a bad model where doctors and hospitals have a financial incentive to sell you lots of services. getting health care costs down is absolutely fundamental to the long-term fiscal health of the country. what would it need to do in the second term? >> i think there's several things. i would point to moving much more aggressively away from fever service, even more rapidly. we don't need to wait until 2020. in addition i think the big gap that remains is medical malpractice reform and what i would favor is a safe harbor to a doctor. if you can show you're following an evidence-based protocol by a medical association, i shouldn't be able to sue you. >> tax and health care reform would have huge benefits but

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i'm fareed zakaria. welcome back to "memo to the president." on the domestic front, in addition to the economy, president obama faces many pressing issues that will demand attention in his second term. but one seems ripe for a solution. immigration reform. james baker, ronald reagan's chief of staff, explains why. >> nothing concentrates the mind like being out of power for four years. okay? so i think that republican attitudes are going to change hopefully they'll change in the aftermath of this most recent electoral defeat because everybody knows that the hispanic vote was very important to what happened. >> john podesta, bill clinton's, chief of staff agrees. a grand bargain on immigration is now possible. >> immigration, i think, we have seen just a sea change as a result of the election. and i think that really is because of just the collapse of

the latino vote for republicans. you know, we saw it drop from 44% for president bush in 2004 to 27% for governor romney. and that's the fastest-growing part of the voting population. and so, i think the republicans know they have gotten themselves into a dark place and they need to come out of that place and they need to deal with the people who are here who are contributing to our society, get them legal, get them on a path to citizenship. >> first of all, we need to beef up our border security. republicans like that. you need some sort of a photo i.d., social security card with biometric identification. item number three would be a guest worker program. and the fourth item ought to be registering the 12 million to 20 million illegal aliens here in the country today and giving them the right to travel and to work. temporarily.

provided, a, they're not criminals. b, they pay their back taxes. and c, they pay a small penalty for having broken the law in the first place. >> but let me push you on that because if you don't provide a path to citizenship -- >> i don't think you have to say that they can become citizens. this -- that part of my four-point program's going to be attacked vociferously as amnesty by many people on the republican side. but it's not amnesty. they have a path to citizenship. they do the way every other immigrant does to become an american citizen. >> what would you say to the republicans who will say, look, they should be deported? >> yes. they should never have -- >> and you think what you say to them, look what your position got us in this last election. we need to pay attention to demographics. okay? i said we need to be the party of hope and opportunity. not the party of anger and resentment.

>> illegal immigration is just one problem with our current system says michael bloomberg, the mayor of new york city and one of america's most successful businessmen. >> good morning. >> bloomberg believes that the current legal system is also hurting our international competitiveness. we let in lots of people from all over the world to study at american universities. >> yes. >> particularly in science and engineering. >> right. >> and then we throw them out. how would you fix the visa system? >> well, first thing is you attach a green card to the diploma for any graduate student that gets a masters or a ph.d. in any of the stem areas, science and technology. and then you you have more h1b visas to get people here and then if someone is willing to get a business and can get financing, you certainly want to give them a visa because they'll start businesses for americans. and lastly, when you have jobs that we need to get done but

americans won't take, like working in the fields, letting the crops rot, or letting the farms move south of the border is just insanity. we need to get people in here. >> i hereby declare -- >> that's a sensible solution that might actually happen. there's also a sensible plan that alas seems a long shot. both parties see the problem. our nation's roads and power lines, bridges and water pipes, are literally falling apart. the problem is, nobody wants to do anything about it. >> good afternoon, everyone. >> ed rendell, the former governor of pennsylvania, has a new book out called "a nation of wusses." he says the solution is simple. >> as governor, i inherited a state that has the highest number of structurally deficient bridges in the nation. we had 6,600. i borrowed money, put in it to bridge repair. stimulus helped us mightily. that is one of the reasons

pennsylvania had the lowest unemployment rate of any industrial state in the union. there was in stimulus something called build america bonds. the federal government said to the states, if you want to do major development and construction projects, we will help you defray 35% of the interest payments. but it ran out when stimulus ran out and in an effort to reauthorize it as a separate program was turned down. now, the beauty of it is very little impact on federal treasury, incredible impact on the amount of projects we could get going. this isn't rocket science. it is not like finding a cure for alzheimer's or parkinson's or cancer. we know what the answers are. we know the cure to the problem and all it takes is political courage. >> kay bailey hutchison is the recently retired senior senator from texas. >> i would ask the president to submit an infrastructure bank and it would leverage your public money with private money so about a 50/50 split and it

would have a revenue stream so that you would be assured, the government would be paid back and bring that money that is sitting on the sidelines in to making a real effort to build highways, it would be bridges, it would be electricity grids. all kinds of infrastructure needs that are not being met now that could be done with lower amounts of taxpayer dollars and that would end up being a revolving fund. >> in fact, the president has submitted just such a plan. but congress doesn't want a bank that would fund projects based on merit. much as they protest publicly, congressmen and women actually like pork. next up, foreign policy. should we bomb iran? intervene in syria? quarrel with china? stay tuned. the boys use capital one venture miles for their annual football trip. that's double miles you can actually use.

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the middle east is in turmoil. israelis and palestinians bear fresh wounds from the recent conflict in gaza. iran continues to play games with the world regarding its nuclear ambitions. and the arab spring continues to reverberate. in some good ways, for sure. but also, in some troubling ways.

and, the civil war in syria becomes a bigger human taryn becomes a bigger humanitarian crisis by the day. that's a lot of problems in just one region. here to give us his take is jimmy carter's national security adviser. what should president obama do with syria as it continues its slow motion drift in to chaos? >> i don't know. and i'm not being evasive. i literally don't know. we have to have better intelligence. who's really fighting assad? who started the fight? how's it financed? where did the initial weaponry for the beginning of that struggle a year ago or so originate? there doesn't seem to be any clarity on it. secondly, what are the objectives of those who are really doing the fighting? for example, the suicide bombing in damascus, is that the work of the so-called more democratic

group that is we would like to see in charge? doesn't that smack of certain forms of extremist terror that's associated with extreme groups? >> would you intervene militarily? >> well, i would intervene militarily if something has to be desperately prevented or if i knew that the effort would not produce a regional war and would produce a desirable political outcome and at this stage i don't see much evidence for a yes as the answer to either proposition. >> james baker served as secretary of state for george bush sr. the president's going to face in his second term, unexpected challenges, but there's one challenge we know he's going to face which is what to do about iran. how would you advise him to deal with it in the second term? >> in my view, we cannot let iran become a nuclear power. not because of the threat to israel or the threat to the united states or the threat to our moderate arab allies in the gulf but because of the

proliferation effect of that. everybody in the region then will want their own weapon and they'll have the means to get it. >> you know what a decision like that would do to the presidency, however, if there's major military action and iran is a big country, many times bigger than iraq. it could derail almost all the other initiatives. >> it could. when i say do what you have to do, it doesn't mean you put boots on the ground in iran, which i think would be a very, very bad mistake. i'm talking about the potential for eliminating their nuclear program through surgical strikes and that sort of thing. we do have technologies now that the israelis don't have that could be effective to do that i think. >> brzezinski sees the dangers regarding iran quite differently. >> get all the silly argument all the options are on the table. xha's that mean? starting a war? the end of which we cannot foresee?

that doesn't make any sense to me and i don't think the country would support it. and i don't buy the absolute ridiculous irrational argument that the iranians are so suicidal that a country of 75 million people or 80 million people rush in to suicide the first time it gets a prototype of its bomb. that even ignores the scientific fact that bombs have to be tested, that you have to have from a military point of view to be credible. it's not a reaction to be decided by someone else drawing red lines for us. >> a red line should be drawn right here. >> what do you think going forward the president's strategy on iran should be? >> i think a war in the region will be a total disaster for the region which would be set aflame, it would make our withdrawal from afghanistan much

more difficult. the war would spread to iraq, to lebanon and to jordan very predictably. the price of oil would skyrocket. these are calamities for us and we would be stuck for another decade. i think that has to be avoided even if negotiations don't succeed. we have in my view a credible, historically tried, safe way of responding. namely, to make it absolutely clear that any threat by them, derived from their acquisition of nuclear capability will be viewed by the united states as an assault on the united states if it is directed at our friends in the middle east and particularly at israel. i think that would contain and deter the iranians. >> how would you handle israel with regard to the iran issue? >> i would tell israel the same thing the obama administration told israel. it is not in the national

interest of the united states for you to bomb iran's nuclear facilities. we don't want you to do that. that's not in our national interest and you let us take care of them. we have the potential to stop it. you have the potential only to delay it. and the consequences of your doing it are right now incomprehensible but they could be very, very dire. >> do you believe that it's important that in president obama's second term he try to make a renewed effort on the middle east peace process, even though, let's face it, so far what he's done has been unsuccessful? >> i'll tell you why i think so. i think if we don't move and do what is necessary, the arab masses will become more radicalized, more religiously driven and, therefore, eventually more jihadist, vis-a-vis israel. and i don't think israel can survive in the long run in that context. >> handling iran will be a delicate balance between toughness and restraint.

and unlike other foreign policy crises, the clock is ticking. we know that president obama will have to deal with this one and probably this year. from the most urgent foreign policy issue to the most important, the relationship between the united states and china. how to prevent a new cold war, when we come back. with the spark cash card from capital one,

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here's a quick look at the headlines. algeria's three-day hostage crisis is over. some americans were among the nearly 800 gas field workers taken captive by what are believed to be islamic extremists. that was on wednesday. the algerian military launched a major push to free them on saturday. it succeeded but dozens of people, both hostages and captors w killed. a warning, this next video is disturbing. a bulgarian politicians narrowly escaped an attack at a party conference. watch this. the 25-year-old gunman was wrestled to the ground. police arrested him and said he was carrying two knives along with the gun. it's believed the gun misfired twice. the second inauguration of the nation's 44th president is just hours away. before noon on sunday, the president will take the oath of house inside the white house. he'll take the oath of office again monday outside the capitol where 800,000 people are

expected to gather on the national mall. those are the headlines this hour. i'm rafael romo. the most important relationship in the world right now is the one between the united states and china. the world's number one and number two economies. successful management of this relationship will be one of president obama's most important tasks over the next four years. it's a mission fraught with potential pitfalls as the two powers compete economically and increasingly politically and militarily as well. a little over a year ago, president obama signaled a pivot to asia. >> the united states is a pacific power and we are here to stay. >> a shift in america's attention toward the east. how is it working?

brzezinski helped to normalize american relations with china as jimmy carter's national security adviser. you say the main challenge that the united states faces at a broad level in foreign policy is the shift of power to asia, both a challenge and an opportunity. >> that's correct. i think our policy, historically, has been europe focused. today, the center of political gravity shifted from europe to asia. in the sense that both are now important. we ought to think of our role in asia, not in the fashion because of two world wars, we are compelled to think of it in europe, but more in the fashion that is similar to british role in europe in the 19th century. britain was not protagonist but a balancer in europe and i think that's the model for us in asia. we should avoid getting involved in mainland contests.

for example, the vietnamese when they offered us the use of cam ranh bay. we're not acting out of charity. they were trying to get us to be in cam ranh bay so our navy would be a form of support for them against the chinese. >> so the danger is -- >> involvement which is not of the size of importance. i think what is important to us is that we be a balancer so that we discourage dramatic shifts or particularly the use of force. >> james baker served as secretary of state under george bush sr. there are a lot of countries in asia that are looking at china's rise with apprehension and they have asked the united states to get more involved, singapore, philippines, vietnam, japan most importantly to a certain extent australia. how should we think about this pivot? >> i think we're wise, for instance, to stay out of the disputes in the south china sea. see if we can get the parties to resolve those disputes

peacefully. now, if those disputes end up creating an impediment to free navigation, freedom of the seas or something, that's a different issue. that would affect our interests directly. if we ever wanted to build an alliance against chinese attempts to become hedgemanistic in that part of the world, we could do it. we could ally with vietnam probably today, interestingly enough. our long-time opponent would be an ally of ours against china but i'm not sure that's the way to go. we will have to closely monitor china's military build-up. we plan to do that as i understand it. that's important to do. we must keep a robust military presence in the pacific. we do that with the 7th fleet. they have every bit a big interest getting along with us as we do with getting along with them. where our interests don't converge, we have differences we stand up for our views and we

stand up for our rights. >> when you look at u.s. relations with china, do you think we should be doing anything different going forward? >> i think we should certainly reassert publicly the importance of the relationship. we should avoid the kind of language that was used in our presidential campaign and particularly by the party that lost. >> on day one, i'll label china a currency manipulator will allow me as president to put in place if necessary tariffs where i believe they're taking unfair advantage of our manufacturers. >> it sent a message to the chinese to which then they started reciprocating in kind with alarm and with anger. and i think that's the kind of stuff we have to avoid. >> robert rubin's, bill clinton's treasury secretary, says china is used as a whipping post during presidential campaigns. >> one thing i think i could say with absolute assurance and i think nothing is absolutely sure

in life, if governor romney had been elected president, he would not have labeled china as a currency manipulator on his first day or any day. china is our most important relationship in my judgment, at least. i think it's in our economic self-interest as well as in their economic self-interest to have an effective relationship. i think a lot of what they complain about with respect to us, for example, our large fiscal deficits, one example, i think it would be in our interest to deal with. similarly, a lot of what we complain about with respect to them, their export-driven strategy, the absence of domestic demand, it's critically important for their own self-interest if they're going to have sustainable growth going forward to deal with that issue. so i think we have a common self-interest in dealing with many of the issues that we complain to each other about. >> what should be the core elements of a u.s.-china relationship going forward? >> the core elements of a cooperative u.s.-chinese partnership is in many respects in the communique issued in

january 2011 by presidents obama and hu jintao of china, went to great lengths in itemizing and developing several areas to be cooperating because it sets a framework, a framework in which the word partnership is really given meaning and a framework for something unprecedented in the history of human affairs, namely, when two major powers arise, they almost never collide. for the first time in history, america and china have the opportunity to avoid that, to be partners and thereby do themselves well because in the present circumstances worldwide if china and america collide, if america and china collide, both will suffer. >> so the lesson is to be careful not to drift into a hostile relationship with china. when we return, i'll give you my own memo to the president.

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we've heard from senior statesmen and women on what president obama needs to do to have a successful second term. and a successful legacy. here are some of my own thoughts. most presidents get just a couple of lines in history. >> we face common difficulties. >> fdr revived the country after the great depression and won world war ii. >> its purpose is not to punish. >> lyndon johnson created the great society. and escalated the war in vietnam. the first line of president obama's legacy has already been written. >> we are done. >> he helped usher in universal health care in america. >> take a deep breath in and out for me. >> that is a historic achievement. but it remains to be seen whether it is the beginning of a path toward a more humane and sustainable health care system

or one more step down a path of fiscal ruin. having expanded access to health care in his first term, obama must now concentrate on bringing costs down using some of the mechanisms within obama care but expanding them and creating others. getting health care reform right will be more important to our fiscal future than any other set of policies. beyond this, obama has opportunities to make large moves. he could and should tackle immigration because it does seem ripe for resolution. he might even be able to find common ground on reforming the tax code, something most americans agree needs to be reformed. but none of these efforts will rise to the level of that second line for obama's legacy. >> good afternoon, everybody. >> that will depend on the future of american growth. the president inherited an economy in free fall. he helped prevent a second great

depression. but he also inherited an economy that was fundamentally unbalanced. for over 20 years, economic growth in america has been slow, recoveries have been jobless and median wages have declined. we need a new strategy for growth based on reform and investment. we need major reforms of regulations and tax policies to make america competitive and growth oriented but we also desperately need new investments for the future. we need a world class infrastructure, not one that is now ranked 25th in the world according to the world economic forum. we need highly trained workers. we need to rebuild our great state universities to be centers of access and excellence so that every american has a path to